Shriram Housing Finance Limited raises Rs.300 cr from Banks

Shriram Housing Finance Limited (SHFL) amidst the current challenging circumstances prevailing in the financial sector, has raised long term debts of around Rs.300 crore from the banking sector. The company raised Rs.250 cr long term Loan from a PSU Bank at 8.50%, the loan being repayable in 5 years. The company has also raised Rs.40 cr NCD under TLTRO 2 at an annualised coupon of 8.55%. With this, the company has raised over 700 cr in the current calendar year.

In the recently declared Financial Results for the year 2020 by Shriram Housing Finance, the company reported a 25% growth in its AUM to Rs.2305 crore by clocking disbursal of Rs.1127 crore for the year. The company has reported a jump of 160% in PBT from 25 crore in FY2019 to Rs.65 crore in FY2020. The PAT grew from 16.6 crore to 46.6 crore in FY2020 registering a growth of 179%. The net worth of the company thereby stood at Rs.513 crore. The company results have also shown a significant improvement in portfolio quality. Robust credit underwriting and collection efficiency has helped to build a superior loan book resulting in GNPA at 5 year low of 2.4% and NNPA at 2.1%. SHFL has also made an additional provision of Rs.10 crore for Covid related impact on its portfolio.

Mr. Ravi Subramanian, Managing Director & CEO, Shriram Housing Finance said, "We are happy that the market has shown confidence in us even during such challenging times. Despite the challenges, SHFL has always focused on getting new business without compromising on the portfolio quality and we look forward to work for the benefit of the society and our customers keeping in mind the current pandemic situation. Besides the debt raised so far, we also have NCDs in the pipeline. This only strengthens our belief that there is sufficient liquidity available for well managed companies."

Shriram Housing Finance Limited with over 65 branches across the country plans to tap the potent opportunity for cross-selling home loans. The company plans to leverage the Groups distribution strength (over 3500 branches across Shriram Transport & Shriram City Union Finance) to cater to the needs of the exclusive set of group customers.

Shares of SHRIRAM CITY UNION FINANCE LTD. was last trading in BSE at Rs.703.45 as compared to the previous close of Rs. 672.7. The total number of shares traded during the day was 33060 in over 3793 trades.

The stock hit an intraday high of Rs. 750 and intraday low of 677.4. The net turnover during the day was Rs. 23617626.

Shares of SHRIRAM TRANSPORT FINANCE CO.LTD. was last trading in BSE at Rs.681.7 as compared to the previous close of Rs. 684. The total number of shares traded during the day was 722201 in over 19597 trades.

The stock hit an intraday high of Rs. 718.35 and intraday low of 678. The net turnover during the day was Rs. 508872482.

Source : Equity Bulls

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